Accounting MCQ Questions and Solutions with Explanations

Section 1 Section 2 Section 3 Section 4 Section 5 Section 6 Section 7 Section 8 Section 9 Section 10 Section 11 Section 12 Section 13 Section 14 Section 15 Section 16 Section 17 Section 18 Section 19 Section 20 Section 21 Section 22 Section 23 Section 24 Section 25

21.
Mr. X forfeited 100 share of Rs. 10 each on which payment of Rs. 2 per share in the first call and Rs. 3 per share in the final call was not received. These shares were re-issued at a deduction of Rs. 1.50 paise per share. Amount transferred to capital reserve will be

A. Rs. 350

B. Rs. 500

C. Rs. 150

D. Rs. 50

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22.
Which one of the following statement is correct?

A. A company consists of heterogeneous members

B. A body corporate includes a cooperative society

C. The expression 'corporation' or 'body corporate' are same

D. A partner cannot contract with his firm, where as a member of a company can

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23.
A contributory is

A. a creditor

B. a shareholder

C. a debentureholder

D. a convertible debentureholder

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24.
Quick ratio is a check

A. Solvency

B. Profitability

C. Performance capacity

D. Liquidity

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25.
The basic accounting equation is based on

A. Cost concept

B. Accounting period concept

C. Accrual concept

D. Dual aspect concept

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26.
Which of the following is not a feature of debenture?

A. Debenture represent borrowed funds

B. Dividend are firstly paid on debentures

C. General debentures do not carry voting rights

D. Debenture comprises a charge on the assets of the company

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27.
On the retirement of a partner, the reserves created out of profits should be transferred to the capital accounts of:

A. The remaining partners in their new profit sharing ratio

B. The remaining partners in their old profit sharing ratio

C. All the partners in the old profit-sharing ratio

D. All the partners in the ratio of their capital balances

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28.
Which of the following account does not start with the opening balance?

A. Income and expenditure A/c

B. Receipt and payment A/c

C. Profit and loss A/c

D. Realisation A/c

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29.
Which of the following statements are correct?
1. Analysis and interpretation of financial statements, is a function of accounting.
2. Profit and Loss account is prepared for ascertaining financial postition of a firm.
3. Goodwill is a wasting asset.
4. Balance Sheet is prepared for ascertaining financial position of a firm
Select the correct answer

A. 1 and 2

B. 1 and 3

C. 1 and 4

D. 2 and 3

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30.
Which one of the following is an investment activity as per AS-7?

A. Redemption of debentures

B. Cash in hand

C. Purchase of fixed assets

D. Interest paid

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Accounting MCQ Questions and Solutions with Explanations | Commerce

21. Mr. X forfeited 100 share of Rs. 10 each on which payment of Rs. 2 per share in the first call and Rs. 3 per share in the final call was not received. These shares were re-issued at a deduction of Rs. 1.50 paise per share. Amount transferred to capital reserve will be

Answer & Solution

22. Which one of the following statement is correct?

Answer & Solution

23. A contributory is

Answer & Solution

24. Quick ratio is a check

Answer & Solution

25. The basic accounting equation is based on

Answer & Solution

26. Which of the following is not a feature of debenture?

Answer & Solution

27. On the retirement of a partner, the reserves created out of profits should be transferred to the capital accounts of:

Answer & Solution

28. Which of the following account does not start with the opening balance?

Answer & Solution

Answer & Solution

30. Which one of the following is an investment activity as per AS-7?

Answer & Solution

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21.
Mr. X forfeited 100 share of Rs. 10 each on which payment of Rs. 2 per share in the first call and Rs. 3 per share in the final call was not received. These shares were re-issued at a deduction of Rs. 1.50 paise per share. Amount transferred to capital reserve will be

22.
Which one of the following statement is correct?

23.
A contributory is

24.
Quick ratio is a check

25.
The basic accounting equation is based on

26.
Which of the following is not a feature of debenture?

27.
On the retirement of a partner, the reserves created out of profits should be transferred to the capital accounts of:

28.
Which of the following account does not start with the opening balance?

30.
Which one of the following is an investment activity as per AS-7?